Certainly! The issue of imposing personal income tax in Oman is not new; it was initially raised in 2020 as part of the country’s economic development plan for 2020-2024. Although a decision to implement this tax was anticipated in 2022, it was postponed due to the pandemic. Now, there is renewed talk of imminent action, with plans to introduce the new tax at the beginning of 2025. This move would be unprecedented in the Gulf region, potentially impacting foreign investments and free services. The government aims to correct financial conditions while considering the risks associated with global oil prices. If implemented, Oman would become the first Gulf country to impose personal income tax¹.
The Shura Council in Oman advanced the draft Personal Income Tax (PIT) bill to the State Council. While the bill is pending approval, here are the key points:

1. Proposed Tax Rates:
   • Foreign nationals with Oman-sourced income above USD 100,000 may face PIT between 5% and 9%.
   • Omani citizens with net income above USD 1,000,000 could also be subject to PIT.
   • The exact rates are yet to be officially confirmed.
2. Implementation Details:
   • The timing of implementation remains uncertain.
   • PIT is part of Oman’s efforts to diversify and enhance government revenues.
3. Implications:
   • Employers should prepare for payroll withholdings and reporting obligations.
   • Individuals should consider potential tax liabilities and compliance requirements.

Remember that this information is subject to change pending official approval².

Source:

(1) OPINION: Is Oman considering introducing personal income tax? (omanobserver.om)

(2) Oman pushes forward with personal income tax framework (Gulf Business.com)

(3) Images by FreePik